Michigan law allows deductions from an employee's wages for repayment of an advance or loan from the employer provided that the employer obtains a signed authorization from the employee (MI Stat. Sec. 408.477).
Document authorization. The signed authorization should include a clear statement of the amount and term of the loan, and the amount of the deduction should be obtained from the employee. The amount of the deduction should also be included on the statement of deductions provided with each paycheck. Employers should substantiate and keep records of such deductions.
Last reviewed on May 11, 2016.